In-line Q3; strong operational performance prompts outlook upgrade

The Q3 results were in line with the consensus and AV’s estimates and, given the strong momentum across the key focus areas, the management upgraded its 2023 guidance. Moreover, the licensing by Astra of an early-stage obesity drug candidate should be a good addition to the firm’s pipeline, given the huge expansion potential for weight-loss drugs. Overall, a healthily-growing young oncology portfolio, promising prospects in other key areas, a strong pipeline and an improving balance sheet all su

AstraZeneca – High growth at a reasonable price

After a few years of strong growth, AstraZeneca’s share price performance has been lacklustre this year, as the focus has shifted to positive developments at other big pharmas. Furthermore, the firm was not able to meet analyst expectations with its recent late-stage readout of a high-potential oncology drug. Nonetheless, the growth prospects remain robust which, along with improving profitability and a healthy balance sheet, make AstraZeneca an attractive investment proposition at the current s

Quarterly beat; growth momentum continues

The Q2 performance exceeded expectations, with strong growth continuing in the key franchises, offsetting the largely-expected decline in the COVID-19 offerings. The 2023 outlook was nonetheless maintained. Although Astra’s share price has largely recovered after some initial disappointment amongst investors concerning an oncology drug’s phase III readouts in July 2023, we maintain our positive stance on Astra, backed by a healthily-growing portfolio across various therapeutic areas, an enviable

Markets have been too harsh on AstraZeneca’s oncology drug readouts

Despite AstraZeneca-Daiichi Sankyo’s oncology drug, Dato-DXd, posting positive high-level phase III results, the markets doubted whether 1/ the efficacy was ‘clinically meaningful’, and 2/ the drug had safety issues. Yesterday’s 8% drop in the Astra share price was clearly an over-reaction as it is too early to draw unfavourable conclusions considering Dato-DXd’s six ongoing phase III trials. Therefore, the correction, in conjunction with the fact that Astra’s shares have lagged Big Pharma ytd,

Initial Equity Trading Comments - 15 May 2023

AstraZeneca PLC: Overcoming The Challenges Of Pricing Clawbacks – Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (04/23)

AstraZeneca achieved mixed results in the last quarter with total revenues surpassing Wall Street expectations but it missed out on meeting the earnings expectations of analysts. The company had a total revenue of $44.4 billion in 2022, a 25% increase at CER, while core EPS was $6.66, a 33% increase from 2021 levels. Their core gross margin on product sales also grew by 6 percentage points to 80% in 2022, primarily due to decreased Vaxzevria sales compared to the preceding year and a favorable p

2023 has started with strong momentum

the Q1 results surpassed consensus estimates, as sustained robust growth in the key franchises offset the inevitable decline in the COVID-19 offerings – which shouldn’t be a major concern for Astra. The 2023 guidance was maintained. Overall, our positive stance on AstraZeneca stems from a young and high-potential oncology portfolio, bright prospects for the other focus areas and a relatively healthy balance sheet – aside from the fact that the amongst Big Pharma, it remains the biggest beneficia

Despite Q4 miss, FY targets were ticked; business momentum intact

Even though Q4 profits were somewhat below expectations, full-year targets were met at the upper-end of guidance. Ongoing momentum in Oncology, CVRM and Rare Disease managed to offset the (expected) decline in Vaccines and Respiratory-Immunology segments. Moreover, 2023 and medium-term guidance was healthy. The share price correction (barring yesterday’s jump) in the last few weeks can be capitalised, since the firm’s fast-growing assets, strong pipeline, a gradually improving balance sheet and

AstraZeneca ADR: Initiation of Coverage – Recent Approvals & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (12/22)

This is our first report on global pharma major, AstraZeneca. The company delivered an outstanding set of results, with revenues of nearly $11 billion surpassing Wall Street expectations. The resilience of its company against the challenging macroeconomic environment helped it deliver another earnings beat. Performance was again evenly distributed across areas, with double-digit year-on-year growth driven by the established Rest of the World, rising markets in Europe, and the United States. The

Oncology-led momentum sustained in Q3 + guidance upgraded

The Q3 exceeded expectations, driven by strong momentum in Oncology and CVRM, and a healthy contribution from Alexion (rare diseases), thereby more than compensating for the decline in COVID-19 vaccine sales – which was never going to be a game-changer. Moreover, aside from top-line growth, profitability was aided by lower R&D expenses. Consequently, the 2022 EPS guidance was upgraded. Overall, a strong portfolio, including a relatively young and high-potential oncology franchise supported by ot

Warpaint London+ (W7L, House Stock at 375p) - Trading ahead of expectations - +10% upgrade implied

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Hybridan Small Cap Feast - 15 April 24

15th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated propositio

Morning Note – 9 April 2024

Avon Protection - Unmasking its growth potential

Avon Protection’s capital markets day highlighted its continued focus on medium-term margin expansion (targeting operating margin of 14–16%), concentrating on its core business of respirators and head protection. The unwinding of the armour business, alongside the consolidation of Team Wendy (acquired in H220) should enable Avon to benefit from rising global defence spending. Its strong relationship with the US DoD, and organic growth opportunities with recurring revenue from necessary product r

Morning Note – 8 April 2024

Hybridan Small Cap Feast - 17 April 24

17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Hardman & Co Research: Tissue Regenix (TRX) - Six consecutive periods of >20% growth

TRX is focused on the development and commercialisation of two proprietary processing technologies for the repair of soft tissue (dCELL®) and bone (BioRinse®). It has a broad portfolio of products used in biosurgery, orthopaedics and dental markets. Investment in tissue processing, manufacturing capacity and strong commercial partners, together with its “4S” strategy, has generated six consecutive reporting periods of strong growth, with TRX turning EBITDA-positive in 2023. Further growth in 202

Cambridge Nutritional Sciences - H1 2024 interims: Executing a newly focussed st

Cambridge Nutritional Sciences (CNS) has published its H1 2024 results to end September 2023. Group revenues grew 44% to £4.9m and gross profits increased by 63% to £3.1m, with the company benefitting from newfound operational efficiencies. With its now streamlined strategy focussing on the core Health & Nutrition business and the initial signs of an encouraging uptick in sales momentum, we believe the company is well positioned for growth that will help create future value for shareholders. We

Venture Life Group - Strong organic growth; focus on EBITDA

Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x. Management have focused on growth with three therapy areas generating double-digit revenue growth and onli

Morning Note – 22 March 2024

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Diaceutics | FY23 update – 22% revenue growth, £16.7m YE cash

Diaceutics has released a trading statement for the year to December 2023 guiding to revenue growth of 22% YoY to £23.7m, up 19% on a constant currency basis. The order book jumped 57% to £26.6m, of which c£12.3m is expected to be realised in FY24, and which currently stands at £30.8m. The proportion of recurring revenue continues to increase and is now over 50% (FY22 35%). Cash at YE23 stood at £16.7m, indicating a near halving of the rate of cash burn in 2H23 compared to 1H23. We adjust our FY

Zoetis Inc.: Launch Of CircoMatch & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (02/23)

Zoetis delivered a decent set of results for the last quarter of 2022 meeting analyst expectations as well as the high end of its management guidance. Despite the economic challenges, ongoing pandemic recovery, and the political unpredictability brought on by the war in Ukraine, they delivered operational growth for the year in each of their top 13 markets. The company's unique companion animal portfolio drove its 8% operational revenue increase for the year, growing 14% operationally. In compar

Morning Note – 12 February 2024